Why do firms spend money and time to advertise?

A)

It is a tax write-off for charity.

B)

To showcase their product among the competition.

C)

Regulations say that companies must advertise their product.

D)

There is no competition, so the company must inform the public.

Firms spend money and time to advertise to showcase their product among the competition.

Explanation:

Advertisement is a form of communication between a seller of goods/services and the consumer. It allows individuals to bring their goods/services in public eye, awarding them of the existence of the said goods/services.

Firms spend a lot of time and money on advertising because it is one of the most effective ways to increase sales and potential customers. It allows firms to expand their market area. As the area expands, so does the base of their audience and hence, more people learn about its existence. An effective advertisement requires time and money so that it looks more attractive and compelling among the competition.